The information in this literature is for general information only. The information is not providing tax, accounting, legal or other professional advice. This material should not be used as a substitute for expert advice from a tax, accounting or legal professional.
The American Recovery and Reinvestment Act adopted in October 2008 allows for a 30% tax credit for costs associated with ENERGY STAR qualified geothermal heat pumps, as noted in section 25D of the Internal Revenue Code. The 30% credit applies to geothermal equipment placed in service through 2019. Tax credits will still be available at a reduced rate until 2022.
Note: Equipment placed in service during 2008 was subject to a cap of $2,000. This cap was removed for geothermal heat pumps placed in service after December 31, 2008.
Many entities beyond the federal government are now providing incentives for purchasers of geothermal heating and cooling equipment. Numerous states, local municipalities and utilities also now offer rebates, tax incentives or low interest loans to support your installation.
For more information on incentives available to you, please contact us or your local tax professional. You can also visit the Database of State Incentives for Renewables and Efficiency at DSIREUSA.ORG. DSIRE is a comprehensive source of information on state, local, utility and federal incentives and policies that promote renewable energy and energy efficiency.